Global Borrowing Costs Hit Multidecade Highs as Government Bond Markets Face Steep Sell-Off

New York, Thursday, 1 October 2026.
Benchmark 10-year U.S. Treasury yields surged above 5.3% on Thursday, reaching their highest level since 2002 as escalating oil prices and ongoing war in the Middle East push inflation fears higher. With central banks signaling further interest rate hikes, sovereign borrowing costs in France, Britain, and Japan have also spiked, driving down equity markets and raising corporate debt costs globally.